UK cost-of-living crisis worsens as energy price cap nearly doubles

British households on Friday faced an eye-watering 80-per cent hike in electricity and gas bills, in a dramatic worsening of the cost-of-living crisis before winter as the country awaits a new leader.

Regulator Ofgem said its energy price cap, which sets prices for consumers who are not on a fixed deal with their supplier, will increase from October 1 to an average £3,549 ($4,197) per year from the current £1,971.

Worse is expected to come in January, when Ofgem next updates its cap, with average bills predicted to top £5,000 — or more.

Ofgem blamed the increase on the spike in global wholesale gas prices after the lifting of Covid restrictions and Russian restrictions on supplies.